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In the event of noncompliance or refusal to comply with any applicable law, regulation, executive order,
<br />OMB Circular or policy by the SUBRECIPIENT, its contractors, the DEPARTMENT may rescind, cancel, or
<br />terminate the Agreement in whole or in part in its sole discretion. The SUBRECIPIENT is responsible for all
<br />costs or liability arising from its failure, and that of its contractors, to comply with applicable laws, regulations,
<br />executive orders, OMB Circulars, or policies .
<br />CONFLICT OF INTEREST
<br />No officer or employee of the DEPARTMENT; no member, officer, or employee of the SUBRECIPIENT
<br />or its designees or agents; no member of the governing body of the jurisdiction in which the project is
<br />undertaken or located; and no other official of such the SUBRECIPIENT who exerdses any functions or
<br />responsibilities with respect to the project during his or her tenure, shall have any personal or pecuniary gain or
<br />interest, direct or indirect, in any contract, subcontract, or the-proceeds thereof, fo r work to be performed in
<br />connection with the project assisted under this Agreement. The SlJBRECIPIENT shall incorporate, or cause to
<br />incorporate, in all such contracts or subcontracts, a provision prohibiting such interest pursuant to this
<br />provision.
<br />CONTRACTING & PROCUREMENT
<br />The SUBRECIPIENT shall use a competitive procurement process in the procurement and awa rd of any
<br />contracts with contractors or sub-contractors that arE! entered into under the original contract award. The
<br />procurement process followed shall be in accordance with 2CFR Part 200.318 General procurement standards
<br />through 200.326 Contract Provisions.
<br />As required by Appendix 11 to 2 CFR Part 200, all contracts entered into by the SUBRECIPIENT under this
<br />Agreement must include the following provisions, as applicable:
<br />Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the inflation
<br />adjusted amount dete rmine d by the Civilian Agency Acquisition Council and the Defense Acquisition
<br />Regulations Council (Councils) as autho rize d by 41 U.S. C. 1908 , must address administrative , contractual , or
<br />legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions
<br />and penalties as appropriate.
<br />All contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal
<br />entity including the manner by which it will be effected and the basis for settlement.
<br />Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60 , all contraots that meet
<br />the definition of 'federally assisted construction contract" in 41 CFR Part 60-1 .3 must include the equal
<br />opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246 , "Equal
<br />Employment Opportunity" (30 FR 12319, 12935, 3 CFR Part, 1964-1965 Comp ., p. 339), as amended by
<br />Executive Order 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity ;" and
<br />implementing regulations at 41 CFR part 60, "Office of Federal Contract Compliance Programs , Equal
<br />Employment Opportunity, Department of Labor."
<br />Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime
<br />construction contracts in excess of $2,000 awarded by non-Federal entities must Include a provision for
<br />compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144 , and 3146~3148) as supplemented by Department
<br />of Labor regulations (29 CFR Part 5, "Labor Standards Provisions Applicable to Contracts Covering Federally
<br />Financed and Assisted Construction"). In accordance with the statute , contractors must be required to pay
<br />wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage
<br />determination made by the Secretary of Labor. In addition , contractors must be required to pay wages not less
<br />than once a week. The non-Federal entity must place a copy of the current prevailing wage determination
<br />issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must
<br />be conditioned upon the acceptance of the wage determination . The non-Federal entity must report all
<br />suspected or reported violations to the Federal awarding agency. The contracts must also include a provision
<br />for compliance with the Copeland "Anti-Kickback" Act (40 U.S.C. 3145), as supplemented by Department of
<br />Labor regulations (29 CFR Part 3, "Contractors and Subcontractors on Public BuHding ·or Public Work
<br />Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each
<br />contractor must be prohibited from inducing, by any means, any person employed in the construction ,
<br />completion, or repair of public work, to give up any part of the compensati on to which he or she is otherwise
<br />entitled . The non-Federal entity must report all suspected or reported violations to the Federal awarding
<br />agency .
<br />15PDM Page 11 of 43 Kittitas County Dept. Of Public Works, E17-062
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